Watch Out Gap, Club Monaco is Muscling Into E-Commerce
When even the haute-est of high-end designers are practically tripping over their pointy-toed shoes to create "wearable" collections they can peddle in online boutiques, you know e-commerce's polarizing influence on the fashion industry is officially over. But in case you're still skeptical, one of the last (mid-priced!) holdouts has joined the ranks. Club Monaco just announced it will sell a limited assortment of its drool-worthy basics online at Shopbop.com.
Imagine fashionistas salivating at the prospect of snagging this season's must-haves: the perfect camel coat, faux fur shrug, lacy pantalettes, and bijoux that don't look stamped from the same factory as Talbots, Ann Taylor Loft, insert name of other copycat brand here. Imagine (almost all of) it available in one click. Can you say, "shopping stampede?"
Except that Club Monaco â€" under the purview of that American classic Ralph Lauren (RL) since 1999 â€" appears to be simply dipping a tentative toe in the e-commerce waters. Which is surprising given how successful Ralph Lauren's own online business has been. Ralphlauren.com posted a 15 percent increase for first quarter fiscal 2011, not to mention Club Monaco's hefty 25 percent net growth.
It would be one thing if the Canadian purveyor of chic basics was still an independent entity. But under the Polo umbrella, Club Monaco doesn't have to reinvent the back-end architecture and distribution logistics, it could simply piggy back on the Pony's established channels. The brand even has more than 100 distribution channels of its own already.
However, Club Monaco is making a smarter choice. By collaborating with Shopbop (owned by Amazon), Club Monaco can take advantage of existing systems, while maintaining its brand's individuality and tapping the e-tailer's more targeted market. A win-win-win. For the time being.
WWD reported that Club Monaco would "dive in head first later this year." If so, what happens to the alliance with Shopbop? I wasn't able to connect with anyone on the e-tailer's team to answer that question, so my guess is that Club Monaco will eventually develop its own e-commerce site. If so, I don't think Shopbop needs to worry about poached customers. Gap (GPS) or more accurately, Banana Republic, is the one who better watch its back.
Gap's had tepid response to its new jeans and pants initiatives, garnering a tiny 2 percent increase in net sales for the second quarter with comps down 4 percent. Which means that Banana Republic's drive to be the go-to for work basics (and its very generous discount policy) isn't really helping the company. And in a stupendously misguided move, Gap is also in the midst of a rebranding effort which is drawing all manner of criticism. That puts Club Monaco in excellent position to scoop up those customers left completely bewildered by Gap/Banana Republic's recent struggles.
Club Monaco's capsule collection goes on sale beginning October 12th. Let the shopping frenzy begin.
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